As the number of immigrants and emigrants are increasing day by day, banks are becoming consumer friendly in order to facilitate more business with them. Also, the desires of having luxurious cars and frequent visits to one’s own country are going higher only. Who doesn’t want to have comfortable tours while being in his country or to give comfort to their loved ones residing there?

However, having a lump sum is not what is common with all of them. Everyone can’t afford to buy a car so banks these days are providing car loans to NRIs with some mandate conditions to be followed. Let’s have a look at the eligibility, criteria, restrictions and all you need to know before applying for a loan.

Eligibility

Since not all of the banks provide this facility, the first mandate thing is to have an account in the bank in which you are applying for a loan. The NRI ought to give the details of his Indian passport, income source as well as the contract on which he is working abroad, a guarantor or co-applicant who must be the Indian resident.

Criteria

Keep this in mind that the criteria vary from banks to banks but the general criteria on which banks approve a car loan of an NRI are as follows. Banks require a steady source of income for the NRI to show in the document. A savings bank account is also considered as a necessary requirement for the guarantor to have in the same bank. It depends on banks of what value does it provide loans like they generally give 80-100% of the showroom price. Banks can include up to 50 percent of the total salary of the applicant for the repayment. Also, the applicant ought to repay the loan in 5-7 years before turning to 65 years of age.

Restrictions

Due to some legal compulsions, banks are unable to register the car in the name of an NRI. So, you have to buy the car in the name of the guarantor or the co-applicant which can be your family members including the stepbrothers, sisters, mother or father.

One benefit is that the minimum transactions and all the other accounts limitations are not for the guarantor but for the NRI and he can pay through the co-applicant, the remittances or through the NRI NRO accounts. However, both the age of the applicant and the co-applicant must be within 21-65 years. Banks generally provide loans easily to the NRIs residing in countries like the United States, United Kingdom, Singapore and other west Asian countries.

Once again let me tell you that these details can vary from banks to banks so these are the most common information regarding approval of car loans to the NRIs. You can check loans for NRI in Delhi online or by visiting your bank if you are a resident of Delhi. Some of the banks in India which provide loans to NRIs are state bank of India, Federal Bank Ltd, etc.